Oil prices fall after Iran sends updated peace proposal to mediators in Pakistan

Oil prices fell Friday after Iran sent an updated peace prososal to mediators in Pakistan, raising hopes again that a settlement with the U.S. is still possible.

U.S. crude oil futures fell more than 3% to $101.57 per barrel by 2:10 p.m. ET. International benchmark Brent lost about 2% to $107.98.

Pakistani officials confirmed to MS Now that mediators received an updated proposal from Iran to end the war. The proposal has been delivered to the U.S., the officials said.

President Donald Trump later said he was not satisfied with Iran’s offer.

“Iran wants to make a deal, but I’m not satisfied with it,” Trump told reporters at the White House. “Iran wants to make a deal because they have no military left.”

Trump faces a 60-day deadline under the War Powers Resolution related to military action in the Iran war.

Under the 1973 law, a president must withdraw troops within 60 days of notifying Congress of their deployment, unless lawmakers authorize the military action. Congress has not done so.

The Trump administration argued on Friday that a ceasefire reached three weeks ago had “terminated” hostilities between the two sides, according to MS Now. This would allow the White House to avoid seeking Congressional approval for the war.

An administration official said that the absence of direct fire between U.S. forces and Iran since a ceasefire was first agreed to on April 7 means the 60-day clock no longer applies.

“For War Powers Resolution purposes, the hostilities that began on Saturday, February ​28, have terminated,” an administration official told MS Now.

The argument was first raised by Defense Secretary Pete Hegseth during his hearing before the House Armed Services Committee earlier Thursday, where he said the ceasefire effectively paused the war.

The U.S. and Israel launched strikes on Iran on Feb. 28, and Trump formally notified Congress on March 2, starting the 60-day clock and setting up a May 1 deadline.

Trump could seek a 30-day extension under the law but has not done so, according to lawmakers.

Tensions remain elevated despite a ceasefire. Trump on Wednesday escalated threats against Tehran, vowing to maintain the U.S. blockade on Iran until Tehran agrees to a nuclear deal.

Tehran has refused to reopen the Strait of Hormuz unless the U.S. lifts its blockade of Iranian ports.

Axios also reported that the U.S. Central Command had prepared a plan for a “short and powerful” wave of strikes on Iran in hopes of breaking stalled talks between Washington and Tehran.

While the two sides are currently in a ceasefire, a senior official from Iran’s Revolutionary Guards had reportedly threatened “long and painful strikes” on U.S. positions if Washington renewed attacks on Iran, Reuters reported, citing Iranian media.

— CNBC’s Kevin Breuninger contributed to this report.